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Quick Knowledge Bits: HO6 Insurance Policy

The following form was obtained from Hammersmith Property Management. Greenwood Estates Realty urges you to consult a qualified insurance professional when choosing insurance coverage.


Insurance Information for Owners

Owner’s Policy: HO6

The Homeowners Association purchases insurance for the building’s common elements.

As a unit owner, it is important to maintain your own insurance to cover the unit interior items detailed in the declarations that are your responsibility in addition to your personal property. To determine what coverage is included and therefore what you may need to supplement, please reference the declarations of your Association. Owners also have liability exposure not covered under the Association’s Master policy. This coverage is inexpensive, usually less that $50.00 per month, and can be combined with auto insurance or carried with the same company covering the Association’s Master policy.

H06 policies should cover four basic items:

  • Personal property coverage

  • Loss Assessment coverage

  • Liability coverage

  • Loss of use coverage

Property Coverage protects the individual homeowner against financial loss should their property be destroyed or stolen. The perils covered include fire, lightening, windstorm hail, explosion, smoke, vandalism, theft, accidental discharge of water, and losses from numerous other sources. It is also recommended that a scheduled valuable items floater be added for gemstones, diamonds, etc. Loss

Assessment Coverage reimburses the owner for a portion of the association’s deductible which is assessed to the unit, including the any roof deductible for wind and hail losses.

Liability Coverage includes bodily injury to a guest inside your home or water loss causing damage to an adjacent unit. It is encouraged that all members carry this crucial coverage.

Loss of use Coverage provides additional living expense should you need to relocate to an apartment or hotel due to a covered loss such as a fire. If the unit is rented, the coverage pays the owner a fair rental value and allows you to continue making mortgage payments.


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